%) P8-50A (similar to) Question Help Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $78,000 and decrease fixed marketing and administrative expenses by $13,000. Members of the board of directors of Security First have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determin whether the company should discontinue the line. Data Table Total Analysis of Discontinuing a Product Line Totals With Totals Without Industrial Systems Industrial Systems $ 720,000 $ 390,000 Security First Product Line Contribution Margin Income Statement For the Year Sales revenue Variable expenses: Product lines Cost of goods sold Industrial Household 76,000 140,000 43,000 71,000 Company Total Marketing and administrative expense Systems Systems Total variable expenses 216,000 114,000 Sales revenue $ 330,000 $ 390,000 $ 720,000 Contribution margin Less cost of goods sold: Variable Fixed expenses: 33,000 270,000 43,000 64,000 76,000 334,000 Fixed 310000 Cost of goods sold $ 27,000 $ 283,000 $ 310,000 Marketing and administrative expense Gross profit Less marketing and administrative expenses: Variable Total fixed expenses 69,000 38,000 71,000 25,000 140,000 63,000 Operating income (loss) Fixed $ (80,000) $ 187,000 $ 107,000 Enter any number in the edit fields and then click Check Answer. Operating income (loss) ? 2 parts Print remaining Done Check